1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ehidna [41]
3 years ago
9

On January 1, a company issues bonds dated January 1 with a par value of $240,000. The bonds mature in 5 years. The contract rat

e is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $249,262. The journal entry recorded on the maturity date (after the last semiannual interest payment has been made and recorded) is:
Business
2 answers:
erica [24]3 years ago
3 0

Answer:

The journal entry on maturity is as follows:

Dr bonds payable  $240,000

Cr cash                                     $240,000

Being redemption of bonds

Explanation:

At the end of the life of the bond,the bond premium or discount would have been fully amortized,hence the only entry left to be made is to debit bonds payable account with face value of the bond and a credit of the same amount to cash account to record the outflow of cash.

The face value of the bond is $240,000,hence the $240,000 is debited to bonds payable in order to finally cancel the debt obligation.

Furkat [3]3 years ago
3 0

Answer:

Journal Entry on Maturity

Dr. Bond Payable  $240,000

Cr. Cash                 $240,000

last Interest Payment

Dr. Interest Expense                    $12,463

Dr. Premium on Bonds Payable $737

Cr. Cash                                       $13,200

Explanation:

When bond is issued over the its face value, then bond is known as issued at premium. The premium value is amortized over the life of the bond.

Interest payment = $240,000 x 11% x 6/12 = $13,200

Now calculate the bond amortization using effective interest method.

Premium amortization = $13,200 - (249,262 x 10% x 6/12) = $737

Interest Expense can be calculated as follow

Interest expense = Interest Payment - Premium amortization = $13,200 - $737 = $12,463

You might be interested in
Which savings plan typically offers the highest rate of interest but the least flexibility?
ss7ja [257]
The answer to this question is A
4 0
3 years ago
Read 2 more answers
Which crimes are complete when the criminal act and criminal intent occur and there is no requirement for resulting harm?
natta225 [31]
Conduct crimes

Hope this helped!
4 0
3 years ago
What kind of economy might a country have if it was influenced by Western thought
vova2212 [387]

Option;

A. communist

B. capitalist

C. democratic

D. republican

Answer: B. Capitalist

Explanation:

Capitalist economic system is one where the ownership and investment are distributed, the fluidity of her wealth and production which are made and maintained by individuals or corporation or by means of wealth which are state owned.

Example of capitalist countries include Switzerland, Australia, Estonia, Canada, United Arab Emirates amongst many others.

3 0
2 years ago
During March, the production department of a process operations system completed and transferred to finished goods 25,000 units
never [62]

Answer:

$2.10

Explanation:

The computation of the cost per equivalent unit for direct material is shown below:

= (Direct material cost + Beginning inventory cost) ÷ (equivalent units for the materials)

where,

Equivalent units would be

= Completed and transferred units + beginning work in progress units + additional units

= 25,000 + 110,000 + 30,000

= 165,000 units

And, all the other things would remain the same

= ($253,000 + $93,500) ÷ (165,000 units)

= $2.10

Since all the units are completed with 100% and we consider it same

7 0
3 years ago
As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she n
ExtremeBDS [4]

Answer: disturbance handler; decisional; more through others.

Explanation:

As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she needs to fulfill many roles. Candace schedules employees for shifts at the front desk, in the dog play areas, and in the bathing and grooming rooms.

This is part of the disturbance handler role of management, which falls under the decisional component. To adapt to being a manager, Candace has had to get things done by working more through others.

4 0
3 years ago
Other questions:
  • Which element of the promotional mix has the inherent weakness of high absolute costs and an inability to obtain direct feedback
    8·1 answer
  • How many of the following items are found on the balance sheet, rather than the income statement?
    11·1 answer
  • A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machi
    11·1 answer
  • Faye files a suit in a state court against Gas Station Stop, claiming employment discrimination. Gas Station loses the suit and
    10·1 answer
  • The technology involved in RFID (Radio Frequency Identification) has traditionally been used to ______.
    10·1 answer
  • Hunter Thompson, an owner, made an additional investment of $21,000 in cash. A firm purchased equipment for $10,000 in cash. A f
    5·1 answer
  • You just borrowed money for four years to buy a car. The payments are $218 a month and the APR is 7 percent. How is the EAR comp
    14·1 answer
  • Controlling is the process of assuring actual activities conform to planned activities. With an example, discuss five (5) import
    8·1 answer
  • Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.15, but management expects to reduce the p
    9·1 answer
  • An investment has an initial cost of $2.7 million and net income of $189,400, $178,600, and $172,500 for Years 1 to 3. The avera
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!